Updater Services Ltd IPO

Operational risks are inherent in the company business as it includes rendering services in contrasting environments. A failure to manage such risks including any errors, defects or disruption in its service or inability to meet expected or agreed service standards, could have an adverse impact on the company business, cash flows, results of operations and financial condition.

The company has a large workforce deployed across workplaces and customer premises. Consequently, its may be exposed to service-related claims and losses or employee disruptions that could have an adverse effect on the company reputation, business, cash flows, results of operations and financial condition.

The company's businesses are manpower intensive and its inability to attract and retain skilled manpower could have an adverse impact on the company growth, business and financial condition. Further, in the event its are not able to manage the company attrition, its may not be able to meet the expectations of the customers, which may have an adverse impact on the financial condition.

A significant portion of the company revenues are derived from a few geographical regions and any adverse developments affecting such regions could have an adverse effect on its business, cash flows, results of operation and financial condition.

The company's business could be adversely affected if its customers fail to renew their contracts with it or the company fail to acquire new customers.

The company face significant employee related regulatory risks and any significant disputes with its employees and/or concerned regulators may adversely affect the company business prospects, cash flows, results of operations and financial condition. Further, the company has significant employee benefit expenses, such as workers' compensation, staff welfare expenses and contribution to provident and other funds. In case its face an increase in employee costs that the company is unable to pass on to its customers, the company may be prevented from maintaining its any competitive advantage and the company profitability may be impacted.

The company has received and may in the future receive anonymous whistle blower complaints, which may adversely affect its reputation, which could consequently adversely impact the company business, cash flows, financial condition and results of operation.

The Proforma Financial Information included in this Draft Red Herring Prospectus may not be indicative of the company actual results of operations and financial position for such periods or as of such dates, or of expected results of operations in future periods or the company future financial position.

The company revenues and profitability vary across its business segments, thereby making the company future financial results less predictable.

The company may be unable to fully realize the anticipated benefits of its acquisitions, including that of Athena, and any future acquisitions or within the expected timeframe. If the company is unable to identify expansion opportunities or experience delays or other problems in implementing the expansion efforts, the company growth, business, cash flows, results of operations and financial condition may be adversely affected.